7 simple ways to score a good deal

Most Read

When financing options are limited, joint-venture partnerships become a necessity. Paul D’Abruzzo shares five considerations that should be front of mind for house flippers searching for the right JV partner

Kathleen van den Berg explains how investors can derive more income from their real estate investments in retirement by using permanent cash value insurance

Everybody wants to get the best possible property deal, but very few actually know how to do it. Property guru Nathan Birch of Australia-based Binvested Group suggests seven ways to get ahead of the pack.

1. Leave your ego and emotions at the door. The better negotiator you are, the less emotion you will show. Using humour is a great way to disarm the other party and hides from them what you are really thinking.

2. Listen, Listen, Listen. Selling isn’t telling, it’s listening and listening well. Not listening is a sign of disrespect. Listening carefully provides little clues that can give you an insight into the other person that are not obvious to the casual observer. If you have poor listening skills, you will ultimately have poor negotiation skills.

3. Prepare any arguments before you walk through the door for negotiations. Having information at hand is key for being proactive and gives you more confidence to call the shots. Be clear about what you’re hoping to achieve and write down your ideal outcome(s). Know what to ask for and when to ask for it. Timing is crucial, as it can cost you the race.

4. Have confidence in your pre-planning, ask for what you want and be assertive with your expectations. If you don’t ask for a certain price, term or inclusion, you’re not even trying. If you have a solid rapport and you deliver your case with confidence, portraying your request is not out of line or unreasonable, you have a far greater chance of achieving your desired result.

5. Be flexible and realistic. If you’re going into negotiation more aggressively than you need to according to your goal, don’t suddenly get greedy and renege/stall. You also don’t want to take the first counteroffer; however, present another opportunity to the other party closer to their response. Remember that timing is of the essence, and more important than screwing the last $5 off someone. If you get too greedy, you can end up losing the deal.

6. Commit. I’ve seen many people go through the thrill of negotiations and then just go cold at the end. If you cannot commit, it is a sign of disrespect, and you will lose credibility. If the other party you are dealing with shows no sign or level of commitment, then perhaps you are being too generous. At the end of the day, any deal comes down to both sides being in agreement on fair and reasonable terms.

7. Close on a positive note. For example, if I am talking with a real estate agent and putting my offer forward, I will end the conversation with a reassuring close. For example ‘Ok, Great. Please keep me posted so I can organize a time to come over and sign the contract’, or ‘Ok, Great. Can you please give me your details so I can put the deposit into your account?’. This shows that you're serious, you're committed and you’re the easy option. You may not deposit the money right that minute; however, it’s making an assumption that the deal is closed.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate